2024/10/27 by Luo, Yihang, Robert S. MacKay, Nick Chater +2 · 1 citation
Economics, Econometrics and Finance · #Complex Systems and Time Series Analysis #FOS: Economics and business #General Economics (econ.GN) #Market Dynamics and Volatility
paper · pdf · doi:10.48550/arxiv.2410.20497
openalex publication_date 2024/10/27 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28
In this paper, we test predictions of a new theory of macroeconomics, called "thermal macroeconomics." The theory aims to apply the mathematical structure of classical thermodynamics, including analogues of temperature and entropy, to predict aspects of the aggregate behaviour of populations of economic agents without analyzing their detailed interactions. We test the theory by comparing its predictions with the behaviour of a variety of simulated micro-economies in which goods and money can be exchanged between agents, confirming the predictions of the theory. The paper serves also to illustrate and make more tangible the predictions of thermal macroeconomics.